Softening prices of food items like cereals, fruits and milk pulled down retail inflation to 6.93 percent in November, though it remained above the comfort level of the Reserve Bank of India. Retail inflation based on the Consumer Price Index (CPI) stood at 7.61 percent in October and 7.27 percent in September.

CARE Ratings has stated, wholesale prices will continue to see a pick-up in the coming months, especially in the manufacturing segment due to the firming up of global metal prices following the opening up of the economy.  CARE Ratings said in a release that “The recent surge in global crude oil prices will also narrow the deflation in the fuel and petroleum segment. Food prices will come down going ahead as kharif crop enters the market. However, the farmer's protests in North India could disrupt supplies to some extent and limit the downside,"

Wholesale inflation surged up to nine-month high of 1.6 percent in November 2020 compared with 0.6 percent in November 2019 and 1.5 percent in the previous month. CARE Ratings' had estimated wholesale inflation at 1.8 percent for the month.

 According to data released by the National Statistical Office (NSO) on Monday, inflation in the food basket was 9.43 percent in November, down from 11 percent in the previous month. Inflation in the 'cereals and products' category reduced to 2.32 percent from 3.39 percent in October. The rate of price rise in 'meat and fish' segment was 16.67 percent in November, as compared to 18.7 percent in the previous month.

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